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What’s the word investors love to hear more than any other? It’s “safe”. Safe is soothing, it implies someone’s looking out for you. That someone cares about your hard-earned money, as if they were there to see the sweat dripping off your brow while you earned every cent of it. They understand what it means to you. Safe suggests your wealth is to be guarded, by steel, concrete, locks, security, and abnormally large men holding threatening weapons.
These are all assumptions. Hearing the word safe is an opportunity to assume much more on the sunny side about an investment and the people behind it, than seeing any dark clouds. For some investors “safe” is a face value signal there are no concerns. They can have full faith and set aside the need to better understand the details.
Unfortunately, an unwavering belief in the word safe has cost investors a lot of money over the years. The word “safe” has catapulted billions of dollars from boring (and actually safe) bank accounts into other investment vehicles tagged with the word “safe”. Those dollars are chasing anything from a slightly better return to a significantly better return.
Read the full “The Most Dangerous Word in Finance” post.
This represents general information only. Before making any financial or investment decisions, I suggest you consult a financial adviser to take into account your personal investment objectives, financial situation and individual needs. Anyone looking to build a portfolio should seek financial advice to find out which strategy is right for them, if you are seeking financial advice then you should consider one of the best financial advisors in Tasmania who may be able to help you identify your goals and put in place a reliable strategy to pursue them.
